Setting up your own business is exciting, but can also be challenging if you’re not prepared, so, you need to determine which business structure you’re going to use and how you want the business to operate. Incorporate a joint-stock company in Egypt can be the most suitable form of your business organization.
Joint stock companies in Egypt can be registered through GAFI, in compliance with the regulations in this matter, where at least three stockholders need to be registered and where the capital is divided into equal value shares.
Foreign investors who choose to register a joint stock company in Egypt must comply with the requirements, and here we mention that at least 49% of the shares must be placed to public subscription at the time of their establishment. Just like the limited liability companies, the joint stock entities can also be owned by foreign investors, considering that the board managers should have at least one Egypt national.
The Characteristics of a Joint Stock Company in Egypt
The joint stock company in Egypt is distinguished by its unique characteristics, such as:
- The company depended on financial considerations as its owner is seen as a group of shares or a legal representative, not a specific person. This is to ensure the company’s continuity even in the event of the death of a shareholder or his exposure to financial bankruptcy.
- When establishing a joint stock company in Egypt, it is necessary to know the ability of shareholders to exchange their shares without any restrictions, and they are traded on the stock market or stock exchange.
- Dividing the company’s debts among the shareholders according to their share ratio, where the indebtedness does not exceed the percentage of shares owned only in the joint stock company.
- Preference for some activities, such as banks, investment and insurance companies, stock exchange business, real estate loans, and credit and savings institutions to be established.
Procedures for incorporate a joint-stock company in Egypt
According to the Egyptian Law No. 159 of 1981, there are a number of papers necessary in order to establish joint stock companies in Egypt so that your company enjoys all the privileges and legal rights, and these procedures include the following:
- The establishment of joint stock companies in Egypt requires the issuance of powers of attorney from the founding partners to the founders’ agent, and the presence of a power of attorney for the subscriber partners.
- Clear copies of the valid personal ID of the founders or the partners.
- A certificate of non-confusion approved by the Commercial Register.
- Security inquiry in case of foreign shareholders or a foreign company.
- A Bank certificate and at least 10% of the issued capital have been deposited in one of the Egyptian banks approved by the Central Bank.
- Attach the receipt of payment of the company’s fees, which amount to 1 thousandth of the capital value.
- If one of the shareholders and members of the board of directors is a public or government employee or a chartered accountant, the approval of the entity in which he works or the register of accountants must be obtained before establishing joint stock companies.
- Investor identification forms for the foreign founders or partners must be submitted in paper format and their copies in a compact disk (CD) format.
- This registration should have its date recorded in the real estate registry. This is necessary for obtaining the company’s tax card.
Starting a business in Egypt through incorporate a joint-stock company in Egypt can be a suitable option for those interested in making money in the country’s main industries.
Our best company formation agents in Egypt at “Consortio Law Firm” can provide you with support and guidance when preparing and drafting the documents for your company, considering the Commercial and the Civil Law in the country.
Just Contact us Now For more details via the phone number 002 01028806061 or send us a WhatsApp or email Info@consortiolawfirm.com.